Short-form video has taken over the internet. Whether your customers are browsing Instagram, watching YouTube, or Googling their next purchase, there’s a good chance they’ll come across a quick video—often just 15–30 seconds long.
These videos are more than just entertainment. They’re powerful advertising tools for promoting your business, connecting with potential customers, and driving sales.
But if you’re investing in video advertising, the big question is: Which platform gives you the best return? Should you be using Meta Reels, YouTube Shorts, or Google Video Ads (Discovery and In-Stream)?
In this article, our Melbourne agency breaks down the pros, cons, costs, and ideal uses for each option. We’ll also explore how they fit into your customer journey, and how to make them work for your goals—whether that’s boosting awareness, getting more website clicks, or increasing online sales.
Meta Reels: High Reach, Lower Cost, Great for Brand Awareness
Meta Reels are full-screen vertical videos shown on Instagram and Facebook. Your business can use them to reach people who don’t follow your page—Reels are designed for discovery and reach, not just your existing audience.
What Makes Reels Attractive for Business?
Meta (the company behind Facebook and Instagram) is heavily prioritising Reels in its algorithms and ad placements, making it one of the most cost-effective video formats for businesses.
According to Meta’s Q1 2024 earnings call, Reels now drive over 3.5 billion reshares daily, with time spent on Instagram increasing by 24% year-on-year thanks to Reels. This massive reach, combined with lower competition from other advertisers, helps keep CPMs down—often outperforming Stories and Feed ads in terms of cost per impression and discovery potential, especially for small to mid-sized businesses.
Typical advertising costs for Reels (based on Australia & US averages):
- CPM (cost per 1,000 impressions): $3.50 – $7.00 AUD
- CPC (cost per click): $0.60 – $1.20 AUD
Reels can reach thousands of new customers for a relatively low spend. If you’re a small business looking to build brand recognition, Reels are one of the most budget-friendly ways to do it.
Best Use for Your Business
- Brand awareness campaigns
- Showcasing products in action
- Behind-the-scenes content or how it’s made videos
- Teasers for promotions or events
When Reels Might Not Be Ideal
If your main goal is driving immediate sales or website traffic, Reels can be hit and miss. Because users are in a passive, scroll-and-swipe mindset, they may not be ready to click or buy straight away.
YouTube Shorts: Highly Engaging and Great for Product Promotion
YouTube’s Shorts are YouTube’s answer to TikTok: short, vertical videos designed for mobile users. Unlike Meta Reels, YouTube users are often watching with sound on and actively looking for entertainment, tutorials, or information.
What’s in It for Your Business?
YouTube Shorts now attract more than 2 billion logged-in users monthly, making it one of the fastest-growing short-form video platforms in the world. In 2024, YouTube reported that Shorts generate over 70 billion daily views, with strong engagement across both entertainment and branded content.
For businesses, this means a huge opportunity to reach and influence audiences—especially for visual products and services like fashion, fitness, tech, and home improvement. Because Shorts are native to YouTube, they’re often viewed with sound on and in full screen, making them ideal for product demonstrations, tutorials, or testimonials. Google’s AI-driven targeting also helps ensure your videos appear in front of the right audience at the right time.
If you’re looking for a format that combines broad reach with measurable engagement, YouTube Shorts are a smart investment in 2025 and beyond.
Typical costs for YouTube Shorts Ads:
- CPM: $4.00 – $8.00 AUD
- CPC: $0.50 – $1.10 AUD
Shorts are slightly more expensive than Reels but often drive better engagement—especially if your content is useful, entertaining, or tells a story.
Best Use for Your Business
- Product demonstrations
- Short tutorials or how-tos
- Customer testimonials
- Quick brand stories or ‘why choose us’ clips
When YouTube Shorts Shine
If you’re trying to educate customers about your product, stand out in a crowded market, or generate interest from warm audiences, YouTube Shorts can outperform other formats.
Google Video Ads: Precise Targeting for Sales-Driven Campaigns
Google Video Ads can appear across YouTube and the broader Google network. Two short-form formats stand out for businesses:
- Discovery Ads – short videos in the YouTube home feed or suggested video section
- In-Stream Ads – 5 to 15-second ads shown before or during YouTube videos (users can skip them after 5 seconds)
These ads are backed by Google’s search and intent data, meaning you can reach people actively researching your product or service.
Why Businesses Use Google Video Ads
Unlike Reels or Shorts, Google Video Ads give you access to detailed intent-based targeting—so you’re not just advertising to broad audiences, but to people actively searching for what you offer.
In 2024, Google reported that video campaigns using intent-based audience segments delivered 20% higher ad recall and 30% more conversions compared to demographic targeting alone source. You can target based on recent searches, website visits, shopping activity, or even YouTube viewing behaviour.
This makes Google In-Stream and Discovery Video Ads particularly effective for businesses selling high-consideration products or services, such as healthcare, finance, professional services, or tech. It also means your ad spend is more efficient—reaching users already showing interest, rather than hoping to catch their attention passively.
For businesses looking to turn awareness into measurable results, Google Video Ads offer precision that most social video platforms can’t match.
Typical costs:
- Discovery CPM: $5.50 – $10.00 AUD
- In-Stream CPM: $6.50 – $12.00 AUD
- CPC: $0.90 – $2.00 AUD
Yes, it costs more—but these ads often convert better, especially for products or services that require a bit more consideration.
Best Use for Your Business
- Driving traffic to your website
- Retargeting customers who didn’t convert
- Promoting time-limited offers or sales
- Showing solutions to a specific problem
Comparing Costs and Goals at a Glance
| Format | CPM (AUD) | CPC (AUD) | Works Best For |
|---|---|---|---|
| Meta Reels | $3.50–$7.00 | $0.60–$1.20 | Brand awareness, lifestyle content |
| YouTube Shorts | $4.00–$8.00 | $0.50–$1.10 | Product highlights, storytelling |
| Google Discovery Video | $5.50–$10.00 | $0.90–$1.80 | Mid-funnel interest, research phase |
| Google In-Stream Video | $6.50–$12.00 | $1.00–$2.00 | Direct sales, lead generation, retargeting |
If you’re working with a limited budget and want maximum reach, start with Reels. If you’re ready to sell or retarget people who have visited your site, Google In-Stream is often worth the extra spend.
Where These Videos Fit in Your Sales Funnel
Top of Funnel (People who don’t know you yet)
- Meta Reels: Show your personality, products, and values
- YouTube Shorts: Entertain and introduce your brand
- Google Discovery: Catch attention while people browse YouTube
Mid-Funnel (People comparing options or showing interest)
- YouTube Shorts: Demo products or explain why your solution is better
- Google Discovery: Educate or retarget recent website visitors
- Meta Reels: Share customer reviews, process videos, or FAQs
Bottom of Funnel (People ready to buy)
- Google In-Stream: Direct CTA to “buy now”, “book today”, or “get a quote”
- YouTube Shorts: Add urgency or incentives
- Meta (other ad placements): Combine with Reels for remarketing
How to Create Effective Short Videos for Your Business
Creating short-form video content might sound overwhelming, but it doesn’t have to be. Whether you’re recording your first ad on a smartphone or working with a production team, the most successful videos tend to follow a few key principles. The good news? They’re simple, practical, and designed to work across platforms like Meta Reels, YouTube Shorts, and Google Video Ads.
Here’s what makes short video content effective—especially for small and medium-sized businesses:
What to do:
- Grab attention in the first second – Use bold text, motion, or a surprising visual to stop the scroll immediately.
- Shoot vertically – Platforms are mobile-first, so full-screen vertical videos perform best.
- Add clear captions – Most people watch with sound off. Captions help get your message across.
- Include a call to action – “Shop now”, “Learn more” or “Visit our site” should appear on screen.
- Keep it short and focused – Aim for 15–30 seconds. Shorter videos often lead to better completion and click-through rates.
What to avoid:
- Overproduction – Glossy, scripted ads can feel out of place on social platforms. Authenticity wins.
- Reusing widescreen content – Landscape videos don’t perform well in vertical feeds and may get cropped.
- Slow intros – Don’t wait to get to the point. Your message should land in the first few seconds.
- Leaving branding to the end – Introduce your business visually or verbally early on to make an impression.
According to a 2024 HubSpot report, 53% of consumers say they’re more likely to engage with brands that show real people in their videos, and 73% prefer short-form content over traditional ads.
The best part? You don’t need a big budget. A quick, well-lit video of a team member explaining a product or a customer sharing their experience can outperform a polished agency-produced ad. It’s all about relevance and relatability.
Ready to turn short videos into real results for your business?
Download our free video content guide for tips on what to say, how to shoot, and where to post for maximum impact—no production crew needed.
So, Which Video Ad Format Should Your Business Use?
Here’s the bottom line:
- Start with Meta Reels if you’re building awareness on a budget
- Use YouTube Shorts to highlight your products or share quick tips
- Invest in Google Video Ads if you want to drive high-quality leads or close sales
The most effective campaigns use a mix of all three, matching each video format to a different stage in your buyer’s journey.
Want Help Choosing the Right Video Marketing Strategy?
At Digital Freak, we help small and medium businesses in Australia create short-form video campaigns that actually deliver results. From concept and creative to running the ads and reporting on ROI, we take care of it all.
Whether you’re curious about Reels, Shorts, or Google Ads—or want to use them all together—we can help.
Download our free video marketing guide or book a free strategy session with our team and let’s explore the best fit for your business goals.
FAQs
What’s the difference between Reels, YouTube Shorts, and Google Video Ads?
Reels and Shorts are organic-style videos shown to users as they scroll social platforms, while Google Video Ad content appears in search-driven spaces like YouTube and Google feeds. Each format suits a different stage of the sales funnel. Need help choosing the right mix? Book a free strategy call with our Melbourne team today.
How much should I budget for short-form video ads?
Budgets vary by platform and goal, but many small businesses start with as little as $500–$1,500 per month. Reels are generally the cheapest, while Google In-Stream offers high-quality leads at a higher cost. Let’s tailor a plan to your goals—chat with our Melbourne-based digital team in a free strategy session.
Can I use the same video across all platforms?
It’s possible, but not ideal. Each platform has different audience behaviours, specs, and styles. A video that works well on Reels may not perform the same on YouTube Shorts or Google. Small edits can make a big difference. Our Melbourne digital agency will help you adapt your content for each platform. Get started with a free consult today.
How do I know if my video ads are working?
The best way to see if your video marketing campaign is bringing in results is to track key metrics like cost per click (CPC), video completion rates, conversions, and return on ad spend (ROAS). Each campaign should include clear reporting to show what’s working—and where to improve. Want a video campaign that’s all about performance? Book a free video marketing strategy call with our Melbourne digital experts.
What kind of businesses get results from short-form video marketing?
We’ve seen success across retail, fitness, health, professional services, eCommerce, and more. If your audience uses social media or YouTube (spoiler: they do), short-format video can help build awareness and drive action. Let’s talk about how it can work for you—schedule a free strategy call with our digital marketing agency in Melbourne today, or download our free video guide!
You know how they say content is King? Well, meet the Queen. Engaging and exciting content is what I’m here to create. Whether it’s websites, print, digital, or social graphics – I take your brand’s vision and industry trends and turn them into high-quality content.
